Southeast Asia is a historical hub for gold manufacturing and consumption. As in many Asian markets, locals view gold as the best way to accumulate wealth and combat inflation. At the 2024 ASEAN Jewelry & Gem Fair in Bangkok, Ermin Siow, Vice President of the ASEAN Gem & Jewelry Trade Association (AGJA), highlighted the strategic role of ASEAN countries in the gold jewelry industry.
Siow pointed out that ASEAN, along with key partners China and India, forms the largest global gold market. Data from Metal Focus revealed that Vietnam, Indonesia, and Thailand are now among the top ten gold-consuming markets worldwide. In 2023, these countries led the region in gold consumption, with Indonesia, Vietnam, and Malaysia respectively consuming 25.1 tons, 15.1 tons, and 11.3 tons, followed by Thailand and Singapore at 9.2 tons and 7.2 tons.
"Gold recycling is a crucial part of our retail trade. In Malaysia, the old gold trade accounts for nearly 40%. Therefore, the actual gold consumption is about 30%-40% higher than these figures, indicating immense potential for the ASEAN region in gold jewelry consumption," Siow explained. He also serves as an advisor to the Federation of Gold and Jewelers of Malaysia (FGJAM).
Additionally, Siow noted that Thailand and Vietnam lead in physical gold consumption, with their gold investment purchases far exceeding those of Malaysia and Singapore.
Southeast Asia is also a leader in gold jewelry manufacturing. In 2023, Malaysia produced the largest amount of gold jewelry in the region at 30.3 tons, followed by Indonesia at 26.8 tons and Thailand at 23.3 tons. Vietnam and Singapore follow with 16 tons and 3.8 tons respectively.
Siow revealed that Malaysia exports more gold jewelry than it consumes, with 22K gold being the primary export. "Malaysia’s exports are almost double the local consumption," he said.
Despite high gold prices, demand for gold jewelry in Southeast Asia remains strong. Siow shared that jewelers in Malaysia and Singapore had record sales during the Chinese New Year period, with consumers unperturbed by high gold prices, often opting for lighter designs. For many, buying gold jewelry is a form of investment, offering both enjoyment and resale value when needed.
The younger generation in Southeast Asia, traditionally less interested in gold jewelry, has also started to embrace it. Siow pointed out that after the pandemic, young consumers have shifted towards jewelry with appealing designs, purchasing gold rings, pendants, and chains.
"Previously, younger consumers considered gold jewelry old-fashioned, but since the pandemic, they’ve begun visiting jewelry stores to select designs they like," Siow explained. This trend is expected to continue.
Each Southeast Asian country has developed its own specialty in gold jewelry manufacturing. Malaysian jewelers excel in crafting 22K gold jewelry, offering a wide range of styles for domestic retailers and wholesalers. Countries like the UAE, Singapore, and China also present strong demand for gold jewelry in other categories.
G2 Gold Sdn Bhd, based in Penang, works with buyers in the UAE, Singapore, Hong Kong, and the Philippines to meet the export market’s demands. "We produce 14K, 18K, 21K, and 22K gold jewelry for the international market. The UAE generally prefers 18K or 21K jewelry. We specialize in plain gold jewelry, meaning pieces without stones or diamonds," said SW Teoh, head of G2 Gold.
Despite challenges, including reduced demand from the UAE market following the pandemic, Teoh noted that Singapore and other markets have shown good performance.
Philippine jewelry, especially its delicate handcrafted pieces, continues to attract attention for its exceptional craftsmanship. "We may not compete with other high-end jewelry hubs, but we have an edge in design and attract international buyers seeking unique pieces," said Cecilia Ramos, President of the Mekawean Jewelry Association.
As a major market for Filipino jewelry, the U.S. remains the top destination, with Japan and the UK also playing important roles. Ramos emphasized the appreciation for Filipino jewelry's craftsmanship and design, asserting that their offerings will continue to stand out in global markets.
Despite the demand for lighter jewelry designs, Southeast Asia’s gold jewelry market is expected to continue thriving, with growing exports, rich craftsmanship, and increasing popularity among younger generations.